A company that focuses on a lower-income market segment:
A) sells on non-price factors such as design and customer service.
B) produces a basic offering to reduce cost structures.
C) focuses its marketing efforts on brand building.
D) relies on patent protections to keep costs low.
E) customizes its marketing mix to different market segments.

Question

Quizplus · Accepted Answer

Producing a basic offering is a common strategy used by companies targeting a lower-income market segment. By reducing cost structures, they are able to offer products at prices that are affordable to this market segment. This strategy is also known as a "no-frills" approach.

A Company That Focuses on a Lower-Income Market Segment